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Minister of Finance, Sri Mulyani Indrawati, confirmed the residual funds in the special account for handling the COVID-19 pandemic and National Economic Recovery (PEN) in the 2020 fiscal year could be utilized in 2021.

According to a copy of the Minister of Finance's Regulation (PMK) Number 187 / PMK.05 / 2020, accessed in Jakarta on Monday, there will be four conditions under which the remaining funds in the special account can be used for the 2021 fiscal year.

The funds can be used for COVID-19 handling and PEN projects that have been contracted out in the 2020 budget year and will be continued in the 2021 budget year.

The funds can also be used to clear arrears for COVID-19 handling and PEN in 2020; activities for handling the COVID-19 pandemic and PEN, which were allocated in 2020 and have not been implemented; and, handling activities that are planned to take place in 2021.

The new PMK will also regulate the remaining funds in question for activities that could not be completed due to force majeure, as stipulated in the Presidential Decree for the Procurement of Government Goods and Services.

For this reason, such projects will be given additional time for completion, including for settlement of payments, which can be done no later than 30 June, 2021. There will be no imposition of late fees.

The Minister of Finance has ensured the use of the residual funds in the special account goes through the revision stage of the 2021 Budget Implementation List (DIPA), in accordance with the PMK provisions regarding budget revision procedures.

Earlier, the government had noted that the realization of the budget for handling COVID-19 and PEN activities had reached Rp386.01 trillion, or 55.5 percent of the total ceiling of Rp695.2 trillion, as of the second week of November 2020.

The Finance Minister has said the trend of budget absorption has continued to improve and has increased 31.9 percent in October this year from the first semester. (Antaranews)